DEPOSITS

12 Months Ended

Dec. 31, 2017

NOTE 18 – DEPOSITS AND RELATED INTEREST

The following table summarizes deposit balances as of the dates indicated:
	December 31,
	2017		2016
(In thousands)

Type of account and interest rate:
Non-interest-bearing checking accounts	$	1,833,665	$	1,484,155
Interest-bearing savings accounts - 0.05% to 0.40% (2016- 0.05% to 0.40%)		2,401,385		2,518,496
Interest-bearing checking accounts - 0.05% to 1.00%
(2016- 0.05% to 1.00%)		1,207,511		1,075,929
Certificates of deposit- 0.10% to 4.00% (2016- 0.10% to 4.00%)		2,429,585		2,312,928
Brokered certificates of deposit- 0.85% to 2.80% (2016- 0.60% to 2.80%)		1,150,485		1,439,697
	$	9,022,631	$	8,831,205

The weighted-average interest rate on total interest-bearing deposits as of December 31, 2017 and 2016 was 0.97% and 0.86%, respectively.

As of December 31, 2017, the aggregate amount of unplanned overdrafts of demand deposits that were reclassified as loans amounted to $1.7 million (2016 - $1.0 million). Pre-arranged overdrafts lines of credit amounted to $15.2 million as of December 31, 2017 (2016- $32.9 million).

The following table presents the contractual maturities of CDs, including brokered CDs, as of December 31, 2017:

		Total
(In thousands)

Three months or less	$	537,114
Over three months to six months		500,020
Over six months to one year		928,613
Over one year to two years		896,331
Over two years to three years		294,459
Over three years to four years		229,232
Over four years to five years		187,463
Over five years		6,838
Total	$	3,580,070

As of December 31, 2017, CDs in denominations of $100,000 or higher amounted to $2.8 billion (2016 - $3.0 billion) including brokered CDs of $1.2 billion (2016 - $1.4 billion) at a weighted-average rate of 1.50% (2016 – 1.18%) issued to deposit brokers in the form of large certificates of deposits that are generally participated out by brokers in shares of less than the FDIC insurance limit. As of December 31, 2017, unamortized broker placement fees amounted to $2.2 million (2016 - $2.6 million), which are amortized over the contractual maturity of the brokered CDs under the interest method.

Brokered CDs mature as follows:

	December 31,
	2017
(In thousands)

Three months or less	$	194,703
Over three months to six months		133,093
Over six months to one year		329,077
One to three years		360,566
Three to five years		131,666
Over five years		1,380
Total	$	1,150,485

As of December 31, 2017, deposit accounts issued to government agencies amounted to $652.0 million (2016 — $563.7 million). These deposits in Puerto Rico and the U.S. Virgin Islands are insured by the FDIC up to the applicable limits, generally $250,000. The uninsured portions were collateralized by securities and loans with an amortized cost of $562.5 million (2016 — $583.9 million) and an estimated market value of $542.9 million (2016 — $521.3 million). As of December 31, 2017, the Corporation had $490.3 million of government deposits in Puerto Rico (2016 — $408.8 million) and $161.7 million in the Virgin Islands (2016 — $154.9 million).

A table showing interest expense on deposits follows:
		Year Ended December 31,
		2017		2016		2015
(In thousands)
Interest-bearing checking accounts	$	4,566	$	4,914	$	5,440
Savings		12,520		12,392		13,660
Certificates of deposit		30,277		28,068		25,246
Brokered certificates of deposit		19,174		21,928		24,904
Total	$	66,537	$	67,302	$	69,250

The total interest expense on deposits includes the amortization of broker placement fees related to brokered CDs amounting to $1.9 million, $2.9 million, and $4.6 million for 2017, 2016 and 2015, respectively. For 2017, 2016 and 2015, includes $0.1 million, $0.2 million and $0.6 million, respectively, for the accretion of premiums related to time deposits assumed in the Doral Bank transaction in 2015.